Perth Glory coach Ian Ferguson has left the A-League's bottom franchise by mutual consent following a run of disappointing results for last season's grand finalists.

A fifth straight defeat to Melbourne Heart on Saturday was the last straw for owner Tony Sage who has appointed Australia Under-17 coach and former Glory striker Alistair Edwards as interim coach for the remainder of the season.

Football Federation Australia has temporarily released Edwards from his national team duties.

Sage told a press conference: "It was mutually agreed that (Ferguson) leave the club, and we have appointed Alistair Edwards as the new manager.

"(Ferguson) agreed that it was unacceptable being bottom of the league, given the squad he's got, and we again mutually agreed it's best for him to go.

"It's an interim situation. What we're going to do from tomorrow, under (deputy chairman) Lui Giuliani, is advertise worldwide for a coach for next season."

Sage disagreed with Ferguson's assessment after Saturday's loss to Melbourne Heart that he lacked squad depth due to budget cuts.

"I don't agree with that. He had the full support of finances," said Sage.

"He assembled his squad by June 30. That squad cost US$3.2million. Our salary cap is US$2.5million, so I can't understand a comment like that.